A Greensboro health care clinic owner pleaded guilty on Wednesday to his role in a $4.7 million health care fraud conspiracy.
Aljihad Shabazz, 44, of Kernersville, pleaded guilty to health care fraud conspiracy and money laundering conspiracy for his role in a scheme that defrauded the North Carolina Medicaid Program of more than $4.7 million.
According to court records, filed plea documents, and today’s hearing, Shabazz was the owner and operator of Reign & Inspirations LLC, a clinic that provided outpatient behavioral services in Greensboro and surrounding areas.
Between 2017 and 2020, Shabazz conspired with other individuals to file fake reimbursement claims to Medicaid for services that were never provided to Medicaid beneficiaries.
As Shabazz admitted in court Wednesday, he obtained the personal information of Medicaid beneficiaries through community outreach programs, including football and mentoring programs, and used the information to submit more than 1,500 fraudulent reimbursement claims.
Some of the reimbursement claims stated that R&I provided services that exceeded 24 hours in a single day.
Court records show that the Medicaid reimbursement payments were deposited in bank accounts under Shabazz’s control.
Shabazz used a portion of the proceeds to pay kickbacks to his co-conspirators and to cover personal expenses, including personal travel, luxury items, and timeshares, and to make cash withdrawals.
Shabazz was released on bond following his plea hearing.
The health care fraud conspiracy charge carries a statutory maximum penalty of 10 years in prison, and the money laundering conspiracy charge up to 20 years in prison.
A sentencing date for Shabazz has not been set.
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.